ARIZONA HOUSE OF REPRESENTATIVES Forty-ninth Legislature - First Regular Session MAJORITY CAUCUS CALENDAR.DOC

ARIZONA HOUSE OF REPRESENTATIVES Forty-ninth Legislature - First Regular Session MAJORITY CAUCUS CALENDAR April 6, 2009 Upon Adjournment of Floor HHR1 Bill Number Short Title Committee Date Action *Pending Rules Committee Hearing Committee on Banking and Insurance Analyst: Stacy Weltsch Intern: Azra Hafizovic HB 2144* SPONSOR: HB 2199* SPONSOR: HB 2200* SPONSOR: insurance; actuarial opinions; financial audits MCLAIN BI 2/2 DPA state compensation fund; employer misrepresentation MCLAIN BI 2/9 DPA workers' compensation; controlled substances MCLAIN BI 2/9 DPA (6-0-0-2-0) (6-0-1-1-0) (7-0-0-1-0) Committee on Commerce Analyst: Dianna Clay O’Dell Assistant: Brooke Olguin Intern: Maureen Howell HB 2252* SPONSOR: international ports development (APPROP S/E: international transportation and port infrastructure) JONES COM 2/11 DPA/SE (8-0-0-0-0) APPROP 3/18 DPA/SE (10-1-0-2-0) Committee on Education Analyst: Jennifer Anderson Intern: Cassondra Warney HB 2497 SPONSOR: schools; postemployment benefits CRANDALL ED 2/23 DPA (8-0-0-2-0) Committee on Government Analyst: Michelle Hindman Assistant: Zach Tretton Intern: Laurel Johnson HB 2581* SPONSOR: library districts; county reimbursement JONES GOV 3/3 DP (9-0-0-0-0) Committee on Health and Human Services Analyst: Dan Brown Intern: Thomas Desmaris HB 2078* SPONSOR: community colleges; bonds; technical correction (HHS S/E: outdoor behavioral health; definition; requirements) CRANDALL HHS 3/4 DPA/SE (7-0-0-2-0) Page of 33 Committee on Judiciary Analyst: Kristine Stoddard Intern: Robert Stout HB 2344* SPONSOR: vulnerable adults; financial exploitation MASON JUD 2/26 HHS 3/4 DPA DPA (8-0-0-0-0) (8-0-0-1-0) DP (5-2-1-0-0) Committee on Military Affairs and Public Safety Analyst: Thomas Adkins Intern: Scott Handler HB 2610 SPONSOR: civil liability; affirmative defenses WEIERS J MAPS 3/11 Committee on Natural Resources and Rural Affairs Analyst: Ralene Whitmer Intern: Sabrina Mericle HB 2419* SPONSOR: HB 2177 SPONSOR: HCR 2030 SPONSOR: special license plates; maintenance (NRRA S/E: mass appraisal guidelines; state lands) GOWAN NRRA 3/2 DPA/SE national park support districts (NRRA S/E: game refuges; firearms) KONOPNICKI NRRA 2/16 DPA/SE initiative and referendum; voter approval (NRRA S/E: Arizona's water protection) STEVENS NRRA 3/2 DPA/SE (7-0-0-1-0) (7-0-0-1-0) (6-0-1-1-0) Committee on Public Employees, Retirement and Entitlement Reform Analyst: Stacy Weltsch Intern: Azra Hafizovic HB 2061* SPONSOR: CORP; probation officers; customary employment (PERER S/E: probation; surveillance; detention officers; retirement) KONOPNICKI PERER 2/24 DPA/SE (8-0-0-0-0) Committee on Water and Energy Analyst: Rene Guillen Intern: Becky Rubenstrunk HB 2335* SPONSOR: HB 2336* SPONSOR: HB 2440* SPONSOR: improvement districts; renewable energy MASON WE 2/19 DPA GOV 3/3 DPA community facilities districts; renewable energy (GOV S/E: county renewable energy incentive districts) MASON WE 2/26 DPA/SE GOV 3/3 DPA/SE drought emergency groundwater transfers MASON WE 2/19 DP Committee on Ways and Means Analyst: Kitty Decker Intern: Matt Stone HB 2346* charter schools; leased property Page of 33 (6-2-0-0-0) (9-0-0-0-0) (7-0-0-1-0) (9-0-0-0-0) (8-0-0-0-0) SPONSOR: MASON WM 2/9 Page of 33 DP (5-1-0-2-0) HOUSE OF REPRESENTATIVES HB 2061 CORP; probation officers; customary employment Sponsor: Representative Konopnicki DPA S/E X Committee on Public Employment, Retirement, and Entitlement Reform Caucus and COW House Engrossed HB 2061 permits certain part-time employees to qualify as members of CORP Summary of the proposed strike-everything amendment to HB 2061 History CORP Created by the legislature in 1986, the Corrections Officer Retirement Plan’s (CORP) is one of three plans administered by the Public Safety Personnel Retirement System It is designed to meet the special needs of personnel engaged in the prison environment Normal retirement commences after the member completes 20 years of service, the member attains age 62 with 10 or more years of service or the sum of the member’s age and years of credited service equals at least 80 points The monthly pension amount is determined by years of credited service multiplied by a factor of 2.5 percent multiplied by the average monthly salary CORP Fund monies consist of member and employer contributions as well as investment income and monies and other assets generated by the operation of the retirement plan The employer contribution rate is different for each employer and changes every fiscal year, based upon an actuarial valuation Currently, Arizona Revised Statute 38-881 defines members as full-time employees who receive a salary and work at least 40 hours a week for more than six months in a calendar year Provisions     Allows employees working for the judiciary, probation, surveillance, and juvenile detention officers to work 20-40 hours per week for more than twenty weeks per year and still qualify as members of CORP Requires the cost to purchase prior active military service or redeem or transfer service credits for employees working 20-40 hours per week for more than 20 weeks per year to be calculated using the member’s hourly salary multiplied by 40 hours on an annualized basis Repeals the act from and after June 30, 2011 Contains an emergency clause Amendments Committee on Public Employment, Retirement, and Entitlement Reform  The strike-everything amendment was adopted Page of 33 HOUSE OF REPRESENTATIVES HB 2078 community colleges; bonds; technical correction Sponsor: Representative Crandall DPA Committee on Health and Human Services X Caucus and COW House Engrossed HB 2078 makes a technical change Summary of the proposed strike-everything amendment The proposed strike-everything amendment defines and establishes inspection and licensure criteria for outdoor behavioral health care programs (Programs) History Pursuant to Title 36, Chapter 4, Article 2, the Department of Health Services (DHS) licenses and regulates a variety of health care institutions including home health agencies, nursing care institutions, and children’s behavioral health programs Provisions         Indicates the Programs shall:  Comply with the requirements for a level two behavioral health residential agency, as established by the DHS by rule  Obtain and maintain national accreditation as a Program  Ensure that the Program’s personnel comply with requirements regarding fingerprinting that apply to children’s behavioral health programs Stipulates that in addition to other health and safety standards that the DHS adopts by rule, the DHS may establish facility, equipment, and sanitation standards for Programs Exempts Programs from any facility standards that apply to a behavioral health service agency Specifies that if the DHS determines there is reasonable cause to believe a Program is not adhering to licensure requirements, DHS staff or specified county officials, may enter any area used by the Program at any reasonable time to determine if any violations exist Stipulates that application for licensure as a Program constitutes permission for any entry or inspection of any area used by the Program Allows the Director of the DHS to take any statutorily authorized action related to licensure of health care institutions against a Program found to be out of compliance with licensure requirements Indicates that when a Program’s license has been suspended or revoked, the Program is subject to inspection upon application for relicensure or reinstatement of license Defines outdoor behavioral health care program Amendments Health and Human Services: o The strike-everything amendment was adopted Page of 33 HOUSE OF REPRESENTATIVES HB 2144 insurance; actuarial opinions; financial audits Sponsor: Representative McLain DPA Committee on Banking and Insurance X Caucus and COW House Engrossed HB 2144 establishes actuarial opinion and memorandum requirements for insurers History The Department of Insurance (DOI) licenses and authorizes the transaction of insurance business by insurers, producers, and other insurance-related entities DOI’s oversight responsibilities include solvency regulation, collection and audit of insurance premium taxes, agent licensing, company certification, consumer assistance, complaint resolutions, rate and policy form regulation, and administration of companies in receivership The National Association of Insurance Commissioners (NAIC) is the organization of insurance regulators from the 50 states, the District of Columbia and the five U.S territories State insurance regulators created the NAIC in 1871 to address the need to coordinate regulation of multistate insurers The NAIC develops uniform regulations and policies for insurance regulators In 2004, the NAIC released revisions to the Actuarial Opinion and Memorandum Requirements (AOMR) Provisions         Removes the requirement that the Director of DOI (Director) adopt rules that provide requirements for the filing of annual audited financial statements Requires all property and casualty insurance companies doing business in Arizona to file a statement of actuarial opinion made by an appointed actuary with the annual financial statement under the standards set by the NAIC Specifies that the statement of actuarial opinion is a public document Orders property and casualty insurance companies who are domiciled in Arizona and required to submit annual statements of actuarial opinion to also submit an actuarial opinion summary to be filed according to NAIC standards States that companies that are licensed, but not domiciled, in Arizona must provide the actuarial opinion summary at the request of the Director Mandates that property and casualty insurance companies who are domiciled in Arizona and required to submit annual statements of actuarial opinion must also require their appointed actuaries to prepare an actuarial report in support to the actuarial opinion that is in compliance with NAIC standards  Stipulates that if the company fails to so, or if the submitted report is unacceptable, the Director may employ a qualified actuary to the required work at the company’s expense Asserts that all documents and materials that are given to DOI in connection with the actuarial report or actuarial opinion summary are confidential, will not be made public and are not subject to subpoena except for the following purposes:  To defend an action seeking damages from anyone pursuant to any action required by A.R.S § 20697.01(A) or rules adopted pursuant to it The company must give written consent for the release of the materials  Upon request of the American Academy of Actuaries in conjunction with disciplinary proceedings if the Academy sets forth procedures for preserving the confidentiality of the materials that satisfy the Director Emphasizes that nothing in A.R.S § 20-697 or §20-697.01 limits the Director’s authority to use the actuarial report, actuarial opinion summary or other materials in furtherance of any regulatory or legal action brought as a part of the Director’s official duties Page of 33          Clarifies that an actuarial report, actuarial opinion summary or other material will not remain confidential after an insurance company cites the information in its marketing or before a governmental agency other than DOI or releases it to the media Prohibits the Director, or anyone working for the Director, from testifying in any private civil action concerning any confidential documents, materials or information Authorizes the Director to:  Share any documents, materials or information with other state, federal and international regulatory agencies, state, federal and international law enforcement authorities and the NAIC and its affiliates and subsidiaries if the recipient agrees and warrants that it has the authority to maintain the confidentiality and privileged status of the information  Receive any documents, materials or information, including otherwise confidential and privileged documents, materials or information from NAIC and its affiliates and subsidiaries and from regulatory and law enforcement officials of other jurisdictions The information received is to be kept confidential or privileged  Enter into agreements that govern the sharing and use of documents and other information that are consistent with the provisions of A.R.S § 20-158  Specifies that any sharing of information under the above provisions does not constitute a waiver of any applicable privilege or claim of confidentiality As of 12/31/10, makes all insurers having $1 million or more in direct premiums written in Arizona in any calendar year, and more than 1,000 policyholders or certificate holders if direct written policies nationwide at the end of the calendar year, subject to the NAIC annual financial reporting model regulation for that calendar year  Exempts insurers having less than the above stated limits from the NAIC requirements unless the Director makes a specific finding that compliance is necessary for the Director to carry out statutory responsibilities  Does not exempt insurers that assumed premiums pursuant to contracts or treaties of reinsurance of $1 million or more Allows the Director to determine whether, consistent with NAIC’s requirements:  A foreign or alien insurer may be exempt from the reporting requirements if the Director finds its domiciliary jurisdiction has a substantially similar law in effect and the insurer has filed its audited financial report and other required information with the Director as otherwise required by the article  An insurer is required to file an audited financial report earlier than June 1, with 90 days advance notice to the insurer  To grant an extension of the June filing date for 30-day periods  To grant an exception to the rotation requirement for a lead audit partner for an insurer  An individual meets the qualifications as an independent certified public accountant  To grant a financial or organizational hardship exemption to allow a qualified independent certified public accountant to perform non-audit services for an insurer having written and assumed premiums of less than $100 million in any calendar year  An insurer may file consolidated or combined audited financial statements if the insurer is part of a group of insurance companies that uses a pooling or 100 percent reinsurance agreement that affects the solvency and integrity of the insurer’s reserves and the insurer cedes all of its direct and assumed business to the pool  To grant a hardship waiver of the audit committee requirements regarding independent audit committee members  To grant a financial or organizational hardship exemption from compliance with any or all of the annual financial reporting requirements Eliminates any liability on the part of the actuary for damages to anyone other than the insurance company and the Director of DOI for any act, error, omission, decision or conduct with respect to the actuary’s opinion unless the actuary engaged in fraud or willful misconduct Allows the Director to adopt rules to implement the provisions in the article Exempts DOI from Title 41, Chapter for the purposes of adhering their rules to NAIC’s regulations regarding annual financial reporting model regulation and the Director’s authority to grant extensions, exemptions and waivers consistent with those regulations Repeals Laws 1991, Chapter 261, Section 35, which requires authorized domestic insurers to file annual statements pursuant to NAIC’s instructions until the rules are adopted by the Director Page of 33 Changes the heading of Title 20, Chapter 3, Article from Actuarial Opinion and Memorandum Requirements to Life and Health Actuarial Opinion and Memorandum Requirements  Makes technical and conforming changes Amendment Committee on Banking and Insurance  Strikes the provisions relating to the confidentiality of the actuarial report, materials, information and actuarial opinion summary  Adds actuarial workpapers to be considered among the confidential documents and materials of actuarial determination  Prohibits an actuarial report, workpapers, an actuarial opinion summary and other materials provided in connection therewith to be subject to public records requests, subpoena or discovery or as evidence in any private civil action  Stipulates that A.R.S § 20-697 and § 20-697.01 not limit the Director’s authority to release documents to the actuarial board, if necessary, or for the use of any regulatory or legal action brought as part of the Director’s duties, nor they constitute a waiver of confidentiality  Prohibits the Director or any person who receives documents of actuarial opinion from testifying in any private civil action concerning confidential documents  Authorizes the Director to share and receive actuarial opinion documents with other state, federal, international regulatory agencies, the NAIC and federal and international law enforcement authorities, as long as the recipient agrees and has the legal authority to maintain the confidentiality of such documents  Allows the Director to enter into agreements governing the sharing and use of the actuarial information  Page of 33 HOUSE OF REPRESENTATIVES HB 2177 national park support districts Sponsor: Representative Konopnicki DPA S/E Committee on Natural Resources and Rural Affairs W/D Committee on Ways and Means X Caucus and COW House Engrossed House Bill 2177 allows for the establishing of National Park Support Districts within a ten mile radius of a National Park or National Monument History of the Strike-Everything Amendment A.R.S § 13-3112 directs The Department of Public Safety (DPS) to issue permits to carry concealed weapons to qualified individuals Such persons must complete a DPS approved firearms safety course, and must meet the following requirements: - Is a resident of Arizona or a citizen of the United States - Is 21 years of age or older - Is not under indictment for or convicted of a felony in any jurisdiction - Does not suffer from mental illness and has not been adjudicated mentally incompetent or committed to a psychiatric facility - Is not unlawfully present in the United States A.R.S § 17-305 prohibits a person from carrying, possessing or transporting weapons onto game refuges, although a person is allowed to travel on a road through a game refuge carrying an unloaded firearm A.R.S § 17-231 subsection B enables the Arizona Game and Fish Commission to establish game refuges The U.S Department of the Interior amended federal rules 36 CFR Part and 50 CFR Part 27 with an effective date of January 9, 2009 These amendments allow a person to possess, carry or transport loaded and operable concealed weapons into National Park Areas and National Wildlife Refuges if conforming to the applicable state laws There are currently nine National Wildlife Refuges in Arizona Provisions of the Strike-Everything Amendment   Allows a person with a valid concealed weapons permit to possess, transport or carry the weapon within a game refuge Makes technical and conforming changes Amendments The Strike-Everything Amendment was adopted in the Committee on Natural Resources and Rural Affairs Page of 33 HOUSE OF REPRESENTATIVES HB 2199 state compensation fund; employer misrepresentation Sponsor: Representative McLain DPA Committee on Banking and Insurance X Caucus and COW House Engrossed HB 2199 changes the misrepresentation penalty and authorizes insurance carriers to initiate civil action History The Industrial Commission of Arizona (ICA) is a regulatory agency that was created in 1925 by legislation implementing the constitutional provisions establishing a workers’ compensation system From 1925 to 1969, the workers’ compensation system consisted of the State Compensation Fund, which was then a part of the Industrial Commission, and self-insured employers which generally were the mining and the railroad companies In 1969, the workers’ compensation system was reorganized and expanded to include private insurance companies The State Compensation Fund was split off from the Industrial Commission and established as a separate agency responsible for providing workers’ compensation insurance coverage The Industrial Commission retained its responsibility as the file of record and its regulatory authority over the processing of workers’ compensation claims Since that time, the role of the Industrial Commission has been expanded to cover other labor related issues such as occupational safety and health, youth employment laws, resolution of wage related disputes, minimum wage, vocational rehabilitation, workers’ compensation coverage for claimants of uninsured employers, insolvent insurance carriers and self-insured employers The policy setting body for the ICA is a five-member Commission whose members are appointed by the Governor and confirmed by the Senate for staggered five-year terms The Commission oversees approximately 322 employees and an operational budget of approximately $20.1 million As a non-general fund agency, the Industrial Commission is funded by an annual tax on workers’ compensation premiums that cannot exceed percent The tax rate for 2007 was percent and remained the same for 2008 [2008 Annual Report of the Industrial Commission] Misrepresentation of payroll, job description or job function of an employee, or the employer’s loss history affecting premium payments is a class felony Currently, the penalty for employer misrepresentation is 10 times the amount of the difference in premium paid and the amount the employer should have paid Provisions     Changes the penalty for employer misrepresentation on a workers’ compensation claim to three times the amount of the difference in premium paid and the amount the employer should have paid Adds that the penalty and any other costs or damages due to misrepresentation shall be collected in a civil action by the insurance carrier Mandates that the insurance carrier shall initiate a civil action within four years after the date the insurance carrier knew or should have known of the misrepresentation Authorizes the insurance carrier to initiate civil action whether or not criminal action is brought against the employer Amendment Committee on Banking and Insurance  Changes the penalty for employer misrepresentation on a workers’ compensation claim to be up to three times the amount of the difference in premium paid and the amount the employer should have paid Page 10 of 33 Authorizes the county board of supervisors to designate a renewable energy incentive district in any unincorporated area of the county, provided the area meets the following criteria:  The district consists of vacant or underused parcels, or other property the board deems suitable for renewable energy equipment, and are the appropriate size for the construction and operation of renewable energy equipment  The district is located in an area that does not cause the construction and operation of renewable energy equipment to be incompatible with other uses of surrounding property This board shall consider factors relating to the construction and operation of renewable energy equipment including:  The ability to adequately buffer the district from surrounding incompatible uses  The noise level emanating from the district alone and in relation to ambient noise levels at the perimeter of the property falling within the proposed district and relative to adjacent lands  The extent to which the district would be located in proximity to existing transportation and electrical transmission corridors  Compatibility with commercial and military air space requirements  The district is consistent with the existing county comprehensive plan  Specifies that the board may determine that the district is not a major amendment to the county comprehensive plan  Stipulates that the district may consist of large portions of unincorporated county land, or non-contiguous plots  Requires the board to follow certain steps before establishing a district Specifically, the board must:  Identify the boundaries of the proposed district  Notify the owners of private property in the proposed district, property managers of federal and state land in the proposed district and all property owners with land one mile of the outer perimeter of the proposed district by first class mail sent to the addresses on the most recent tax roll The notice has to be mailed at least 15 days before the hearing is scheduled to be held regarding the formation of the district  Publish a notice of the proposed district in a newspaper of general circulation in the county once each week for two consecutive weeks before holding the required hearing  Hold at least one public hearing in the county supervisorial district in which the proposed district is located to provide information and receive public comments  Allows the board to adopt a resolution establishing the district if, after the hearing, the board determines that the public interest, convenience and welfare will be served by establishing the district  Stipulates that the resolution adopted must state the reasons for establishing the district, the specific conditions that qualify the area to serve as a district and provisions for the orderly and beneficial redevelopment of the district  Requires the board to adopt a renewable energy incentive plan to encourage the construction and operation of renewable energy equipment in the district The plan may contain:  Expedited zoning or rezoning procedures  Expedited processing of plans, proposals, and permits  Waivers or abatement of county zoning fees, processing fees, and county improvement district fees and assessments for development activities  Waiver or abatement of development standards and procedural requirements  Clarifies that renewable energy equipment has the same meaning as defined in A.R.S § 42-14155 Amendments Committee on Water and Energy  The strike everything amendment was adopted Committee on Government  The same strike everything amendment was adopted  Page 19 of 33 HOUSE OF REPRESENTATIVES HB 2344 vulnerable adults; financial exploitation Sponsor: Representative Mason DPA Committee on Judiciary DPA Committee on Health and Human Services X Caucus and COW House Engrossed HB 2344 changes the definition of position of trust and confidence as applied to incapacitated or vulnerable adults to include a person who is in a confidential relationship with the adult and specifies that the existence of such a relationship is an issue of fact History Arizona Revised Statutes (A.R.S.) § 13-1802 establishes that a person commits theft if the person knowingly takes control, title, use or management of an incapacitated or vulnerable adult’s assets or property through intimidation or deception, while acting in a position of trust and confidence, and with the intent to deprive the incapacitated or vulnerable adult of the asset or property A.R.S § 46-456 defines position of trust and confidence to be any person that is any of the following:  One who has assumed a duty to provide care to the incapacitated or vulnerable adult;  A joint tenant or a tenant in common with an incapacitated or vulnerable adult; or  One who is in a fiduciary relationship with an incapacitated or vulnerable adult including a de facto guardian or de facto conservator Provisions  Changes the definition of position of trust to include a person who is in a confidential relationship with the incapacitated or vulnerable adult The issue of whether a confidential relationship exists must be an issue of fact to be decided by the superior court based on the totality of the circumstances  Establishes an affirmative defense to prosecution if the assets were given as gifts consistent either with:   A pattern of gift giving to the defendant that existed before the adult became incapacitated or vulnerable; or  A pattern of gift giving to a class of individuals that existed before the adult became incapacitated or vulnerable and the defendant later becomes a member of the class Specifies that a person who is in a position of trust and confidence to an incapacitated or vulnerable adult must use the incapacitated or vulnerable adult’s assets only in the incapacitated or vulnerable adult’s best interest, and not for the benefit of the person who is in the position of trust and confidence to the incapacitated or vulnerable adult or the person’s relatives, unless either of the following applies:  The superior court gives prior approval of the transaction; or  The transaction is specifically authorized in a power of attorney that is executed by the incapacitated or vulnerable adult as the principal or in a valid trust instrument that is executed by the incapacitated or vulnerable adult as a settlor Page 20 of 33 o The authority, including any contracted commissions, fees or other compensation, must be specifically identified in detail and separately initialed by the incapacitated or vulnerable adult and include at least one witness to the power of attorney or trust instrument at the time the document is executed by the incapacitated or vulnerable adult  Gives rise to the inference that the person intended to permanently deprive the incapacitated or vulnerable adult of an asset if proof exists that a person took control, title, use or management of an incapacitated or vulnerable adult’s asset without any significant benefit to the incapacitated or vulnerable adult  Establishes that persons who commit financial exploitation of an incapacitated or vulnerable adult are subject to actual damages, and allows the court to award additional damages for an amount up to two times the amount of the actual damages  Allows, rather than requires, the court to: o Order a person who commits financial exploitation of an incapacitated or vulnerable adult to forfeit all or a portion of the person’s benefit with respect to the estate of the incapacitated or vulnerable adult o Revoke, in whole or in part, any revocable: o  Disposition or appointment of property that is made in a governing instrument;  Provision that is contained in a governing instrument that confers a general or nongeneral power of appointment; and  Nomination or appointment that is contained in the governing instrument that nominates a person to serve in any fiduciary or representative, executor, guardian, conservator, trustee or agent Sever the interests of the incapacitated or vulnerable adult that are contained in a governing instrument that nominates or appoints the person who committed financial exploitation in any property that is held by them at the time of the violation as joint tenants with the right of survivorship or as community property with the right of survivorship, and transform the interests of both into tenancies in common  Specifies that if the court revokes or severs a person’s interest, it does not affect any third party interest in property that was acquired for value and in good faith  Stipulates that if the court imposes revocation, the provisions of the governing instrument must be given effect as if the person disclaimed all provisions revoked by the court or, in the case of the revocation of a nomination in a fiduciary or representative capacity, the person who committed financial exploitation predeceased the decedent  Specifies that the incapacitated or vulnerable adult or the duly appointed conservator or personal representative of such person’s estate has priority to, and may file, a civil action and allows any other interested person (if an action is not filed by the incapacitated or vulnerable adult or the duly appointed conservator or personal representative) to petition the court for leave to file an action on behalf of the incapacitated or vulnerable adult or their estate  Moves the definitions of deception and intimidation from the financial exploitation of incapacitated or vulnerable adults statutes to the corresponding criminal statutes  Defines assets, disposition or appointment of property, governing instruments, and revocable  Makes technical and conforming changes Amendments Committee on Judiciary  Provides a definition for pattern of gift-giving  Exempts trust instruments executed before the effective date of this bill from the separate initialing and witness requirements it imposes Amendments Committee on Health and Human Services Page 21 of 33      Exempts agents acting within the scope of the person’s duties as or on behalf of a licensed health care institution that provides services to the incapacitated or vulnerable adult Removes provisions relating to the separate identification, initialing and witness requirements for a power of attorney to be valid Relocates provisions relating to affirmative defenses and inferences into title 13, rather than Title 14 Defines adequate consideration, pattern of gift giving, and property Makes technical and conforming changes Page 22 of 33 HOUSE OF REPRESENTATIVES HB 2346 charter schools; leased property Sponsor: Representative Mason DP X Committee on Ways and Means Committee on Education Caucus and COW House Engrossed HB 2346 provides a property tax exemption for any property that is leased to a non-profit charter school if it is used for educational purposes History The Arizona Constitution (Constitution) provides that all property is subject to tax unless specifically exempt The Constitution does allow an exemption from property tax of any educational, charitable and religious associations or institutions not used or held for profit Current law requires the owner of any property that is exempt from tax to file an initial affidavit with the county assessor stating the reason for the exempt status Some exemptions also require annual affidavits Charter schools are public schools These schools may be owned by a nonprofit organization or a for-profit organization; however, the majority of these schools are owned and operated by nonprofit organizations Laws 2006, chapter 392, established a property tax exemption for property owned by a non-profit religious or charitable organization that leases the property to a non-profit charter school organization Laws 2008, Chapter 252 further clarified the requirements to obtain this property tax exemption This bill will allow the leased property of a non-profit charter school that is used for educational purposes to be exempt from property taxation regardless of whether or not the property owner is a non-profit or for-profit Provisions    Expands the property tax exemption for leased property to non-profit charter schools to include any leased property by a charter school used for educational purposes, whether or not the owner of the property is nonprofit or for-profit Eliminates the requirement that the owner of property that leases the property to a non-profit charter school be a non-profit religious or charitable organization recognized under 501(c)(3) of the Internal Revenue Code Makes technical and conforming changes in statutes relating to the administration of the affidavit for a property tax exemption for non-profit charter schools Page 23 of 33 HOUSE OF REPRESENTATIVES HB 2419 special license plates; maintenance Sponsor: Representative Gowan W/D Committee on Transportation and Infrastructure DPA S/E X Committee on Natural Resources and Rural Affairs Caucus and COW House Engrossed House Bill 2419 changes requirements for license plates so that only special license plates must be maintained so that the name of this state is not obscured The Strike-Everything Amendment was adopted in the Committee on Natural Resources and Rural Affairs as follows: History of the Strike-Everything Amendment On June 20, 1910 the Enabling Act set aside land for the State of Arizona to be held in trust for the common schools An additional two million acres were set aside for other public institutions This state trust land is required to be put to use in a way that will benefit the 14 trust beneficiaries There are currently 9.2 million acres of state land held in trust The beneficiaries are common schools; legislative, executive & judicial buildings; the State Hospital; the Miners Hospital (2); Department of Corrections; Department of Juvenile Corrections; normal schools grant; agricultural & mechanical colleges; military institutes grant; school of mines grant; university land code; U of A; and the Arizona School for the Deaf and Blind Arizona Revised Statutes Title 37, Section 102 charges the State Land Department (Department) with the administration of “all laws relating to lands owned by, belonging to and under the control of the State.” The State Land Commissioner (Commissioner) is required to classify and appraise all state lands and the improvements on the land for the purpose of sale, lease or rights-of-way (A.R.S § 37-132) State lands may be leased for a length of 10 years or less without advertising These short-term leases may only be granted upon application to the Department The lessee must use the land for the purpose for which the land was leased and the lessee cannot sublease the land without prior written permission from the Department (A.R.S § 37-281) Lessees of state lands are required to cooperate with the Department in making classifications and appraisals and provide information requested by the Department This information, if not pertaining to state lands, is confidential and not open for public inspection (A.R.S § 37-282) Provisions of the Strike-Everything Amendment   Requires the Commissioner to complete the following before undertaking a mass appraisal:  Notify in writing the lessees, permittees and right-of-way grantees occupying the proposed mass appraised state land  Notify in writing known industry, trade and professional organizations that typically represent the occupants of the proposed mass appraised state land  Allow 90 days for the submittal of comments and valuation information by the affected parties Requires the Commissioner to base mass appraisal on valuation information including market consistent comparables for that land use in Arizona Page 24 of 33 The Commissioner must take into consideration different markets for the land use and require that use and market to be reflected in the mass appraisal Requires the Commissioner to take the following into account when using valuation and comparables information in preparing a mass appraisal:  Any costs incurred by the occupier of the land to prepare for the land for use  Whether the occupier of the lands can subsequently sublease, permit or license the land or improvements for third party revenue Mandates a 90 day review and comment period for the previously notified parties when a mass appraisal is completed  If the mass appraisal is modified after the 90 day period, the parties must be notified and given an additional 60 day review and comment period After the review period, the Commissioner must submit the mass appraisal to the Board of Appeals for approval, rejection or modification Requires mass appraisals be reappraised at least every ten years Requires the Commissioner to adjust a mass appraisal when the Commissioner determines that significant changes in market conditions or otherwise would materially affect the valuation of the land uses subject to the mass appraisal  If a mass appraisal is going to be changed, written notice must be given to holders of leases, permits and right-of-ways affected by the mass appraisals Allows any lessee, permittee or right-of-way grantee to appeal the mass appraisal after receiving written notice of a rental or fee on a mass appraisal adopted after December 31, 2006 Allows for a site-specific appraisal to set the rent or fee for the use of the state land for the remainder of the existing lease if the following applies:  The mass appraisal was adopted after December 31, 2006 and does not meet the mass appraisal notice requirements and procedures  The lessee, permittee or right-of-way grantee makes the request and bears the cost Defines comparables and mass appraisal         Amendments The Strike-Everything Amendment was adopted in the Committee on Natural Resources and Rural Affairs Page 25 of 33 HOUSE OF REPRESENTATIVES HB 2440 drought emergency groundwater transfers Sponsor: Representative Mason DP X Committee on Water and Energy Caucus and COW House Engrossed HB 2440 allows groundwater to be transported away from a groundwater basin that is outside an active management area (AMA) under specific emergency circumstances and on a temporary basis History Groundwater use in Arizona is subject to regulation according to the state groundwater management code Under current law, transportation of groundwater away from a groundwater basin is generally prohibited However, there are several exceptions to this prohibition which include transportation of groundwater within a sub basin (or within a groundwater basin if there are no sub basins) without payment of damages or between sub basins of a groundwater basin, subject to payment of damages (A.R.S Title 45, Chapter 2, Articles and 8.1) HB 2440 allows groundwater to be transported to another basin if certain conditions are met Similar legislation was passed in 2000 (Laws 2000, Chapter 205), 2003 (Laws 2003, Chapter 248), 2006 (Laws 2006, Chapter 97), 2007 (Laws 2007, Chapter 149) and 2008 (Laws 2008, Chapter 88) Provisions     Provides an exemption during drought emergencies from the current law that prohibits transporting groundwater away from a groundwater basin Requires the Director of the Department of Water Resources to approve a request to transport groundwater away from a groundwater basin that is outside an AMA if all the following apply: - the Governor declared an emergency due to lack of precipitation or a water shortage; - the groundwater will be withdrawn from an existing well; - a city or town has consented to the groundwater withdrawal if the well is located within the incorporated area of the city or town; - the county has consented to the groundwater withdrawal if the well is located within the county and the groundwater is to be transported outside of the county; - the district has consented to the withdrawal if the groundwater is withdrawn from within the boundaries of an Agricultural Improvement District or an Irrigation and Water Conservation District established pursuant to Title 48, A.R.S.; - the groundwater will be moved only by motor vehicle or train; - the groundwater is necessary to provide supplies for domestic, stock watering or potable municipal water service purposes; - the water will be transported to a location included in the emergency declaration; - the county, city or town receiving the water has implemented an emergency conservation plan; - the water will not be used in an AMA Limits transportation of groundwater to six months or until the Director determines that the groundwater transportation is no longer necessary The Director may extend the request for an additional six months Upon revocation or expiration of approval, the transportation of the groundwater must stop Requires the Director to approve or deny a request within thirty days of receipt of the request This thirty day time frame is utilized instead of the licensing time frames established by agency rule Page 26 of 33      Stipulates that transfer of groundwater away from a basin outside an AMA is subject to the payment of damages Prohibits transportation of groundwater if it will be used to subsidize insufficient supplies due to continued growth or deficient base water supplies States that this act is intended to provide interim water for true emergencies Contains a retroactive effective date of April 30, 2009 Establishes a delayed repeal date of April 30, 2010 Page 27 of 33 HOUSE OF REPRESENTATIVES HB 2497 schools; postemployment benefits Sponsor: Representative Crandall DPA Committee on Education X Caucus and COW House Engrossed HB 2497 permits a school district governing board that offers postemployment benefits to establish a fund or trust account to fund postemployment benefits provided to employees and their spouses or dependents History Employees of a school district are eligible to receive benefits from participation in the Arizona State Retirement System (ASRS) Some school districts currently provide other postemployment benefits (OPEBs), separate from those offered through ASRS, as part of a compensation package designed to attract and retain qualified employees OPEBs may include healthcare benefits, such as medical, prescription drug, dental, vision, and hearing, which are either provided through or are separate from a defined benefit pension plan Life insurance, disability, long-term care, and other benefits may qualify, but must be provided separate from a defined benefit pension plan The Governmental Accounting Standards Board (GASB) was established to raise governmental accounting standards and develop new and more efficient ways to deal with financial reporting GASB issued Statements No 43 and 45 to institute standards for the accounting and financial reporting of OPEBs Since most postemployment benefits are based on pay-as-you-go financing, entities not recognize the cost of OPEBs over the employee’s years of service The new standards adopted by GASB address this issue by requiring financial reporting of current postemployment benefits and any actuarial-based future liability a governmental entity has related to postemployment benefits GASB Statement No 43, implemented in FY 2006-07, applies to school districts that use a trust account through which OPEB assets are accumulated and benefits are paid in accordance with an agreement between the school district, the employee, and the employee’s beneficiaries To qualify, trust contributions must be irrevocable and assets must be dedicated to give benefits and be legally protected from creditors GASB Statement No 45, implemented in FY 2007-08, applies to school districts that not employ a trust account for the management of OPEBs and report only their current obligation to participate in the plan Provisions  Allows a school district governing board that currently offers postemployment benefits to school district employees, or to employee spouses or dependents, to deposit monies used for these benefits into an OPEB fund or trust account, or both  Prohibits additional monies from being appropriated by the Legislature to fund postemployment benefits  Defines an OPEB fund as a cash-controlled fund  Stipulates that monies in an OPEB fund are not subject to reversion, but if the fund is inactive for a period of five years, any remaining monies must revert to the school district’s maintenance and operation fund  Requires an OPEB trust account to meet all of the following conditions:  Contributions deposited into the trust account are irrevocable  The assets in the trust account must be dedicated to providing benefits to the school district retirees and their beneficiaries  The assets in the trust account are legally protected from creditors of the school district or the investment manager Page 28 of 33         Requires an investment manager for an OPEB trust account to be either a qualified investment manager appointed by the school district governing board or the manager of a public agency pool Permits the investment manager for an OPEB trust account to invest and reinvest monies, hold, purchase, sell, assign, transfer and dispose of securities and investments in the same manner as the monies in the Permanent State Trust Land Fund Prohibits more than 30 percent of the monies in an OPEB trust account from being invested in equity securities Authorizes a school district to pay current or prior year postemployment benefit liabilities into the OPEB fund or trust account from any fund from which the school district may pay employee benefits Such payment is considered an expenditure from the originating school district fund Stipulates that expenditures for administrative and management costs and the payment of benefits may be made from the OPEB fund or trust account Clarifies that postemployment benefits offered pursuant to this act not include benefits provided by ASRS Directs each school district, by September of each year, to submit an actuarial study of existing and prospective OPEBs to the Joint Legislative Budget Committee (JLBC) The study must include an analysis of defined contribution plans and defined benefits Makes technical and conforming changes Amendments Education  Changes the reporting requirements to require each school district to submit their most recent actuarial study of existing and prospective OPEBs to JLBC by September 1, 2009 Thereafter, a school district is required to submit a copy of any new actuarial study conducted by the district to JLBC within 30 days of the study being completed Page 29 of 33 HOUSE OF REPRESENTATIVES HB 2581 library districts; county reimbursement Sponsor: Representative Jones DP X Committee on Government Caucus and COW House Engrossed HB 2581 allows a county’s board of supervisors to require a county free library district to reimburse the county for the cost of services provided to the special district History County free library districts are special taxing districts established by county boards of supervisors for the establishment of county libraries or networks of county libraries (Arizona Revised Statutes (A.R.S.) § 48-3901) The library districts may be funded by bonds and by a county free library tax (A.R.S § 48-3903 and 48-3904) County free library districts rely on counties for services such as finance and legal work Currently, 22 of the 37 types of special taxing districts specified in Arizona statute may be required by a county board of supervisors to reimburse the county for services performed (A.R.S § 11-251.06) Provisions   Adds county free library districts to the list of special tax districts from which counties may require reimbursement for services performed Makes technical and conforming changes Page 30 of 33 HOUSE OF REPRESENTATIVES HB 2610 civil liability; affirmative defenses Sponsor: Representative Weiers J DP X Committee on Military Affairs and Public Safety Caucus and COW House Engrossed HB 2610 includes decedents in current affirmative defense statutes related to civil actions and provides liability protection for police tool product manufactures in civil actions for any injury or death caused by the police tool product History Pursuant to A.R.S Sections 12-711 and 12-712, the finder of fact in any civil action may find the defendant not liable if the defendant proves any of the following:  That the claimant was under the influence of an intoxicating liquor or a drug and as a result, the claimant was at least 50% responsible for the accident or event that caused the claimant’s harm  That the claimant was attempting to commit, committing or immediately fleeing from a felony criminal act and as a result, the claimant was at least 50% responsible for the accident or event that caused the claimant’s harm  That the defendant did not act intentionally and that the claimant was attempting to commit, committing or immediately fleeing from a misdemeanor criminal act and as a result, the claimant was at least 50% responsible for the accident or event that caused the claimant’s harm Laws 2006, Chapter 254 stipulates that if a court finds by a preponderance of the evidence that a plaintiff is harmed while attempting to commit, committing or fleeing after having committed or attempted to commit a felony criminal act, the following presumptions apply to any civil liability action or claim:  A victim or peace officer is presumed to be acting reasonably when threatening or using physical force or deadly physical force to either: protect himself against another person’s use or attempted use of physical force or deadly physical force; make an arrest, prevent or assist in preventing a plaintiff’s escape  This state and its political subdivisions are presumed to have reasonably hired and trained these peace officers to use physical force or deadly physical force if a peace officer threatens to either: protect himself against another person’s use or attempted use of physical force or deadly physical force; make an arrest, prevent or assist in preventing a plaintiff’s escape  The police tool product that caused physical harm is presumed not to be defective and the manufacturer is presumed not to be negligent, if prior to sale, the product either: conforms with generally applicable state of the art safety when the product was designed, manufactured, packaged and labeled; complies with any applicable code, standard, regulation or specification established or approved by the United States, the State of Arizona or any of their agencies A police tool product is defined in A.R.S Section 12-716 as any weapon, safety equipment or product that is used by law enforcement Provisions   Specifies that in product liability cases:  The defendant is not liable if the product was used contrary to instructions and the intended consumer (rather than injured person) knew or should have known of the instructions  Changes made to product warnings after the defendant first sold the product are not admissible as direct evidence of a defect Includes decedents in affirmative defense statutes related to civil and criminal actions Page 31 of 33        Applies current legal presumptions in civil liability actions or claims to circumstances when a plaintiff is attempting to commit, committing or fleeing after having committed or attempted to commit a misdemeanor criminal act Specifies the following presumptions:  A victim or peace officer is presumed to be acting reasonably if the victim or peace officer threatens to use or uses a police tool product to protect himself or another person against another person’s use or attempted use of physical force or deadly physical force  A victim or peace officer is presumed to be acting reasonably if the victim or peace officer threatens to use or uses physical force or deadly physical force to protect another person from another person’s use of physical force or deadly physical force  This state or a political subdivision is presumed to have reasonably hired and trained its peace officers to use physical force or deadly physical force if a peace officer threatens to use or uses physical force or deadly physical force to protect another person from another person’s use or attempted use of physical force or deadly physical force In civil actions for any injury or death caused by a police tool product where the product conforms with the generally recognized state of the art applicable to the safety and warnings of the product at the time the product was designed, manufactured, packaged and labeled, the following apply:  Requires police tool products that cause the physical harm and any accompanying warnings to be deemed not defective  Prohibits the manufacturer of police tools from being liable for damages Requires the court to grant calendar preference and schedule an expedited hearing if the defendant files a motion to dismiss or a motion for summary judgment and notice of the motion is served pursuant to court rules Requires the court to award the moving party costs and attorney fees if the court grants the motion to dismiss or for summary judgment Defines the terms costs and plaintiff Makes technical and conforming changes Page 32 of 33 HOUSE OF REPRESENTATIVES HCR 2030 initiative and referendum; voter approval Sponsor: Representative Stevens DPA S/E X Committee on Natural Resources and Rural Affairs Caucus and COW House Engrossed House Concurrent Resolution 2030 proposes an amendment to the Arizona Constitution that would require a state, county, city or town initiative or referendum that would require an increase or expenditures of public revenue to be approved by 2/3 of those voting The Strike-Everything Amendment was adopted in the Natural Resources and Rural Affairs Committee as follows: History of the Strike-Everything Amendment The Federal Water Pollution Control Act (Act) was amended in 1977 and became commonly known as The Clean Water Act (CWA) Its main purpose is to restore and maintain the chemical, physical and biological qualities of the surface waters of the United States This is done by preventing pollution from entering or discharging into the water from point and non-point sources Point source discharges are from facilities like industrial plants or municipal sewage plants through conveyances such as pipes or man-made ditches Non-point discharges are caused by the runoff of rain and snow This water runoff picks up pollutants like fertilizers, insecticides and residential residue as it flows into surface waters (U.S Environmental Protection Agency) The National Pollutant Discharge Elimination System (NPDES) program or Federal Point Source Discharge Program is a permit program that regulates the runoff from point source discharges Most states, with authorization from the Environmental Protection Agency, administer the NPDES program Arizona became one of these authorized states in 2002 and established the Arizona Pollutant Discharge Elimination System (AZPDES) permit program (Arizona Department of Environmental Quality) During the 110th Congress, a bill (H.R 2421) was proposed that would increase the types of waters regulated by the Act The bill removes the defined term navigable waters from the Act (33U.S.C 1251 et seq.) and adds waters of the United States as a defined term Waters of the United States is defined in the bill as “all waters subject to the ebb and flow of the tide, the territorial seas, and all interstate and intrastate waters and their tributaries, including lakes, rivers, streams (including intermittent streams), mudflats, sandflats, wetlands, sloughs, prairie potholes, wet meadows, playa lakes, natural ponds, and all impoundments of the foregoing, to the fullest extent that these waters, or activities affecting these waters, are subject to the legislative power of Congress under the Constitution.” Provisions of the Strike-Everything Amendment  Sets forth that the Members of the Legislature:  Oppose the proposed expensive and pointless expansion of the Federal Point Source Discharge Program  Resist any new legislation increasing Federal authority by weakening State authority Amendments The Strike-Everything Amendment was adopted in the Natural Resource and Rural Affairs Committee Page 33 of 33 ... property Page of 33 ( 6-2 - 0-0 -0 ) ( 9-0 - 0-0 -0 ) ( 7-0 - 0-1 -0 ) ( 9-0 - 0-0 -0 ) ( 8-0 - 0-0 -0 ) SPONSOR: MASON WM 2/9 Page of 33 DP ( 5-1 - 0-2 -0 ) HOUSE OF REPRESENTATIVES HB 2061 CORP; probation officers; customary... initiative and referendum; voter approval (NRRA S/E: Arizona' s water protection) STEVENS NRRA 3/2 DPA/SE ( 7-0 - 0-1 -0 ) ( 7-0 - 0-1 -0 ) ( 6-0 - 1-1 -0 ) Committee on Public Employees, Retirement and Entitlement... SPONSOR: vulnerable adults; financial exploitation MASON JUD 2/26 HHS 3/4 DPA DPA ( 8-0 - 0-0 -0 ) ( 8-0 - 0-1 -0 ) DP ( 5-2 - 1-0 -0 ) Committee on Military Affairs and Public Safety Analyst: Thomas Adkins Intern: